In the Mundell-Fleming model,the exogenous variables are
A)government spending,taxes,and income.
B)the exchange rate and the price level.
C)the price level,the world interest rate,monetary policy,and fiscal policy.
D)the world interest rate,the price level,and the exchange rate.
E)none of the above.

Question

Quizplus · Accepted Answer

In the Mundell-Fleming model, the exogenous variables include the price level, the world interest rate, monetary policy, and fiscal policy, as these are considered to be determined outside the model and affect the endogenous variables like output and exchange rate.

In the Mundell-Fleming Model,the Exogenous Variables Are